Globaleyes

Globalization and Corporate Social Responsibility

By Allan Reesor-McDowell

This is the eighth in a series of articles on economic globalization sponsored by the Peace Ministries Program of MCC Canada. The writers are young adult Canadians who are studying and thinking about globalization and seeking to make a difference.

Have you ever had the feeling that you’re not welcome?  What about when you were abroad?  I have lived, traveled, studied and worked in many parts of the world, and found the hospitality to be overwhelming.  People will literally give whatever they have to make you feel welcome.

In Guatemala, hospitality is a significant part of the culture as well.  I recently spent 5 weeks in Guatemala leading a delegation of Ontario youth on a service and learning experience. The Enlace program has been developed to provide 16-19 year olds with cross-cultural experience in order to grow in Christian faith, broaden worldview, build leadership skills, and develop transformative relationships.

Everywhere we went, Enlace participants were shown incredible hospitality.  This was until we crossed the border into San Marcos, a province in the western part of the country. Consistently, we were met with cold faces, raised eye brows, and questions that sent the message, “We don’t want to have anything to do with you.”  Why?  Because we were Canadian.

Mining for gold

Guatemala is a country of about 13 million people, 50 percent of whom are indigenous and direct descendents of the great Mayan empire. It is one of the last countries in Central and South America with such a high percentage of indigenous people.  Guatemala is also a country with a brutal and violent history since the dawn of the New World.

Edgar, my Spanish teacher in Guatemala City, described his country in this way: “Guatemala is like a girl that is beautiful on the outside, but inside everything is messed up from a whole series of abuse, illness, and violence...”  The physical beauty of the country is incredible and natural resources are plentiful, but within the country’s borders there is a culture of violence, a long history of power being misused, and immense poverty very much connected to 500 years of exploitation and injustice. More than 80 percent of the population lives on less than 2 dollars a day. 

It is in this context that Glamis Gold Ltd., a Canadian mining company, has been extracting gold from the western province of San Marcos.  The company has a terrible reputation for exploiting the local indigenous population, destroying the environment, and overusing precious fresh-water resources that local residents need in order to survive.  Though it is claimed that all communities were openly consulted before the mine began operating, locals we met say that didn’t happen.  As Canadians, we were associated with the company and therefore not welcome in San Marcos.

Corporate irresponsibility?

How could this be?  I had the understanding that Canadians – through the work of many NGOs, private corporations, and our very own government – were making a positive contribution around the world.  How is it possible that a Canadian mining company could be doing so much damage?  Isn’t corporate social responsibility an integral part of companies working in developing countries, particularly as consumers and investors are increasingly making fair trade, sustainable development, and economic justice a priority?

It turns out that the issue of corporate social responsibility (CSR) for Canadian corporations working in developing countries is something the federal government is trying to address.  The Department of Foreign Affairs and International Trade has organized four roundtable discussions throughout the country on the topic of CSR, and in December, 2006 they will be bringing recommendations to Parliament.¹

The problem is that currently, there are no government policies or laws that cover Canadian corporations working abroad.  Corporations often establish their own CSR codes, however, with no system of accountability in place, the codes are not usually followed by the majority of companies.  As long as corporations come to an agreement with and follow the laws of the host government (which may be corrupt and/or may not have sufficient laws surrounding the governance of natural resources), they are free to operate as they wish.  This can have devastating effects for the local populations.

So there we were, a group of youth on a MCC learning tour, high up in the mountains in a remote village in western Guatemala, with about fifty community members watching us uneasily.  It is an interesting feeling to be associated with exploitation.  “We are not speculators, we are not here to develop another mine,” we explained.  

The same story is being played out all over the world.  Canadian companies operate well over 100 mines abroad.  Some companies are taking the issue of CSR seriously; most, unfortunately, are not.  The issue is accountability: how can corporations operating outside of Canada be held accountable to be socially responsible? 

What can we do?

Upon returning from Guatemala, the question that I ultimately found myself asking was this:  What can I, as a follower of Jesus living in an increasingly inter-connected world, do to promote the biblical values of peace and justice?  I developed this short list for myself:

1. Pray with others in your church and discuss ways of acting locally to promote biblical values of peace and justice.
2. As a Canadian, be grateful that you have a voice.  Use that voice to advocate for just policies from our governments (as individuals, a church, or through supporting NGO’s like Mennonite Central Committee).
3. As a consumer, be aware of how you spend your hard-earned cash.  Think of every dollar that you spend as being a vote for how you would like things to be produced.
4. As an investor and shareholder, support companies that take their CSR codes seriously, and look for ways to develop systems of accountability for these codes.
5. Start a discussion in your church to develop ideas for keeping each other accountable to live and promote economic justice – in your community and around the world.
6. Become informed.  Learn about injustice in your community and within our borders. Focus on issues that interest you or that have a local connection.
7. Think globally, act locally.  If you are interested in global issues, start by learning about and connecting with organizations that are working abroad but have local initiatives in which you can become involved.
8. Get involved in KAIROS’ campaign on water and corporate responsibility.  See the Kairos water campaign for more information.
9. Start small.  Don’t get overwhelmed.  “At each small turn choose peace.” 

 

¹The Canadian federal government released its ground-breaking report, National Roundtables on Corporate Social Responsbility (CSR) and the Canadian Extractive Industry in Developing Countries, in the spring of 2007.

 

Allan Reesor-McDowell is the TOOLS and Youth and Young Adult Coordinator for MCC Ontario.  He has studied History and French at Eastern Mennonite University in Harrisonburg, VA, worked with the MCC SALT program as a Human Rights Associate in Haiti, and traveled extensively.  He hopes to one day start an environmentally sustainable business with a focus on corporate social responsibility.

 

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